UPDATE: RCI CLASS ACTION LAWSUIT - must read for all RCI members [Includes Results]

[deejay]

works for me

This view does not make me an RCI apologist. It's just a different perspective that tells why some of us may realistically see more harm than good coming from this class action suit - for hundreds of thousands of owners, if not a million or more.

Some in this thread have tried to paint anyone who hasn't jumped on board as uneducated, foolish, brainwashed or spineless. Just isn't so. And sarcasm or shouting (over-sized, bold letters) from a few doesn't make it so, either. Debating the merits of this suit, which may impact all of us in some fashion, is not hijacking the thread either but rather, it's completely on topic.

RCI has been, and is continuing to meet or exceed my expectations.

 

[Lisa P]

Resorts need to protect their own interests, and that means finding other options to keep their offseason owners in the game. It also means finding other resale options for the off season weeks they get back that does not involve RCI exchanging.....

That's why informed owners working with their HOA boards are important. We need to be proactive. The resorts really don't need to give RCI the total heave-ho. That would also be disruptive for some members.

I agree with these statements.

If Disney could negotiate to have their new RCI contract include a regional block, it ought to be possible for other desirable resorts to negotiate contract renewals that prohibit RCI from renting out exchange inventory into their resorts (particularly in red season?) more than 2 months in advance of check-in.... or some other such restriction. Couldn't the resort's contract agreement with RCI state that the resort prohibits incoming renters through any exchange company which is confirmed anytime prior to the Last Call period? Couldn't they stipulate that they'll refuse to honor said reservations?

Does this lawsuit do anything to open the door to this kind of contract option for sold-out (perhaps 80%?) resorts???

I can understand developers wanting to continue to rent out excess inventory via RCI Rentals. Affiliation contract re-negotiations could require wording which includes language that spells out the time period that RCI is required to leave exchange deposits in the exchange spacebank after deposit as well as how long before check-in it may be rented out by RCI. If these contracts had to include the option to limit rentals of non-developer weeks to 4 months out for off-season and 2 months out for high or red season, then solidly managed resorts could use the re-negotiation period to institute protections on behalf of their owners who would opt to utilize RCI for their exchange needs. Is there any avenue for this through the class action?

 

[Carolinian]

The thread below has several posters such as JLB who have regularly searched certain areas in RCI for years and kept notes. What they have found after RCI's recent ''disenhancements'' is not a decrease in trading power, but that thousands of the best weeks have simply been removed from the system. People can't see what they used to see because they are simply not in the system anymore, not because of changes in trading power for tiger traders.

www.timeshareforums.com/forums/rci/93191-how-big-yours.html

 

[AwayWeGo]

J. L. B. Has Not Put In An Appearance Lately. Whussup With That ?

The thread below has several posters such as JLB

For a while there, JLB sent in lots & lots of humorous & informative TUG-BBS entries, but not for a long time now.

I hope he is OK.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[Elli]

For a while there, JLB sent in lots & lots of humorous & informative TUG-BBS entries, but not for a long time now.

I hope he is OK.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

Alan, if you check "Over Yonder" you'll see him post there.

 

[Clintshare]

What notice ???

Well, the RCI attorneys wanted the court to believe that all RCI members should have seen it buried on page 94 of Endless Vacations magazine. You mean you didn't see it there? :hysterical:

I let the Judge know that many timeshare owners hate that magazine, myself included, and toss it in the recycling bin unopened. I further told him that several years ago many of us notified RCI that we did not wish to receive the free magazine but we were told that there was no way to opt out, that receiving it was a requirement of our RCI membership!

And if you saw the link on the RCI web site, you would have had to read over 100 pages of legal mumbo jumbo to try and figure out what was being proposed.

I also told the Judge that the lawsuit had been pending for so many years that a lot of people assumed it had "died." Rumors would surface from time to time but they usually proved false. I told him that even if I had noticed the link on the RCI website, or saw the notice in the magazine, I wouldn't have trusted anything that came from RCI. I was awaiting some sort of official notification from the Court or the plaintiff's attorneys to let me know what was going on.

I do look at the magazine when it comes in. It is not much use, but I look anyway. I never saw any Class Action notice. I'll have to go back and look.

 

[TUGBrian]

Hearing should be going on right now, im looking forward to updates!

 

[rocketraj]

im looking forward to updates

 

[itgrafix]

Is it too late?

Is it too late to be part of the lawsuit? I was unaware and didn't receive any emails - am assuming it is too late, but thought I'd ask in case there is some hope.

 

[TUGBrian]

the settlement hearing today was to decide on what further steps RCI must take in order to better inform its members, so you havent missed the boat yet.

 

[Jennie]

UPDATE: August 12th hearing.

A hearing was held today at the Federal Court in Trenton, New Jersey to determine the form of a new Notice of Settlement..

Previously, at a hearing held on June 16, 2009, Judge Sheridan ruled that the initial notice of the proposed settlement sent to RCI Weeks members (via publication on page 94 of Endless Vacation Magazine and referenced "within an enclosure on the table of contents page") was "difficult to find," difficult "to determine to whom the Notice applied," and "inadequate."

This prior decision was a victory for every RCI Weeks member who hadn't learned about the lawsuit within the timeframe to opt out or to choose a settlement option and/or file an objection to the proposed Settlement. They will soon have a new opportunity to exercise one or more of their rights.

The attorneys for RCI submitted a new proposed notice in the form of a postcard, which was acceptable to the Plaintiffs' attorneys, but not to the Objectors. The Judge therefore scheduled a hearing for today, which lasted about 90 minutes, to determine the most appropriate way of "re-notifying" the class members of the terms of the proposed settlement. A week prior to the hearing, RCI's attorneys submitted a new, much improved Notice, which they substituted as their submission to the Court. The Judge approved this second Notice. We "Objectors" further recommended that the same notice be sent by Email to those members whose email addresses are on file with RCI. The Judge ordered that both methods of communication be used simultaneously.

The Objectors suggested that the notice contain a link to TUG, Timesharing Today, and/or Redweek.com where class members could read more consumer-friendly information. The judge declined, ruling that it is adequate that the published notices will have a web site link and phone number to the site set up by the Plaintiffs' and Defendants’ attorneys to assist members who want more information and forms.

The attorneys for RCI requested that the deadline for members to respond to the new postcard notice be 30 days after mailing, to which the Plaintiffs' attorneys agreed, but which the Objectors considered inadequate. RCI's attorneys then agreed to 45 days, and it was so ordered by the Judge.

The Judge has stated that he will consider applications from two attorneys who have expressed a desire to be named "counsel for the Objectors." One of the attorneys, Susan Collins, is a TUG member who posts as "Susan2" on the TUG Bulletin Boards. The other, Steve Willett, is an attorney from Virginia who, although not a timeshare owner himself, claims to be familiar with the timeshare exchange process through his parents’ ownership of a timeshare.

November 30th is the date when the next "Fairness Hearing" will be held in Trenton, New Jersey at 2:30 p.m.. If anyone is within driving distance, please consider coming to the court that day (and maybe bring a bunch of relatives and friends). It could have a tremendous impact upon the final outcome of this important lawsuit. We've been told that it is rare for more than one or two people to show up in court for a class action Fairness Hearing. A large turnout puts the Judge on notice that the proposed settlement may not be meeting the expectations of the class members.

We objectors are optimistic about achieving some positive results. As the saying goes, "Nothing ventured, nothing gained". By the way, my "venturing" today involved driving almost 100 miles in torrential rain!

 

[Simoncc]

Thanks again for the efforts you, Susan and Shep are making - not least in battling the elements!

I understand that the plaintiffs are acting for Weeks members but am I right in thinking that the proposed settlement also applies to RCI's actions under the Points system?

 

[JEFF H]

By the way, two attorneys--one from upstate New York (TUG member "Susan2") and a man from Virginia--applied to be appointed as "Atorney for the Objectors". Due to technical legal issues, the Judge could not rule on it at this time. But he seems inclined to approve it in the near future.

Let me be a Cynic here for a moment.
Couldn't this be a couple more Attorneys that are just playing Us and attempting to worm their way to the table to get a piece of the settlement fee pie?

 

[grest]

Just wanted to say thanks for the updated information.
Connie

 

[urple2]

Thanks Jennie for the update and everyone's efforts in this.

That meeting that is scheduled 9/9 does seem intriguing...

 

[Dori]

I would also like to add my thanks for your help. Having you all step up to the plate for fellow TUGgers is much appreciated.

Dori

 

[Jennie]

Thanks again for the efforts you, Susan and Shep are making - not least in battling the elements!

I understand that the plaintiffs are acting for Weeks members but am I right in thinking that the proposed settlement also applies to RCI's actions under the Points system?

It does not apply directly to Points members. But hopefully if RCI "gets the message" about the need to treat members fairly, they may be less likely to engage in the same behavior re: the Points inventory.

With Points, you still own the "underlying" week and have the right to reserve the use of it each year (within certain timeframes) instead of accepting the Points. You also have the "home resort preference." If you have reserved the use of your own week and/or unit, or another week at your home resort, and you later find something in the RCI Points inventory that you would like to have instead, you can cancel your home resort reservation (usually without any cost or loss of points if it is more than 120 days before the check-in date) and confirm the other week.

Of course this is a simplistic summary of the how the Points program works. But, the way I see it, it's similar to a free "search first feature" especially if the "underlying" week you own is one you would be willing/happy to use every year if RCI's inventory of other available weeks is poor. RCI would not make a penny on you (except the annual membership fee, and you can always cancel your RCI Points membership and revert back to traditional ownership of your week). RCI would lose the ability to collect an exchange fee from you plus from the other owner who gave up the use of their week that year. So, if RCI rents out desirable weeks to the public, and leaves poor weeks in the Points inventory, they may lose enough money from unrealized exchange and membership fees to make it not worth their while.

I know there are other arguments that can be made, but I think that is best left for discussion on the "Points systems" Forum boards.

And, bottom line, if there are serious issues with the way the Points program is run, I'm sure there will be an abundance of lawyers ready to step up to the plate and file another class action suit. These suits cost RCI millions of dollars to defend, not to mention the loss of members who may defect to other exchange companies when they learn the truth about what RCI is doing with deposited weeks.

 

[timeos2]

A different case (finally)

Let me be a Cynic here for a moment.
Couldn't this be a couple more Attorneys that are just playing Us and attempting to worm their way to the table to get a piece of the settlement fee pie?

Thankfully. no. These individuals are not being paid but are volunteering this time (so far) and have already done more than the shysters (who stand to get MILLIONS!) did in almost 3 years of sloth like "progress" to an unsatisfactory end.

If they can get standing to be paid more power to them as they have earned it and should have the full support and respect of TUG, all RCI members / former members and the timeshare community at large.

GO GET 'EM! We have a voice.

 

[Jennie]

Let me be a Cynic here for a moment.
Couldn't this be a couple more Attorneys that are just playing Us and attempting to worm their way to the table to get a piece of the settlement fee pie?

No, no! Susan is an avid timeshare owner like us who got involved after reading the article about the proposed settlement in Timesharing Today magazine. After speaking by phone with Shep Altshuler, editor of the magazine, she agreed to submit to the Court the 100+ letters sent by readers who were upset about the proposed terms. As an attorney, admittted to the Bar in New York and Hawaii, Susan had the knowledge necessary to do so in the prescribed manner.

Admittedly Susan has no experience in class action lawsuits but she has first hand experience in timesharing. She has become increasingly disturbed by many of RCI's policies, especially the renting of weeks that were deposited by members for members. Susan traveled 400 hundred miles each way to attend the June and August hearings, and spoke so well on our behalf that the Judge pointed to her and told the plaintiff attorneys "She did your work for you" (meaning presenting info to the Court about what was so inadequate about the proposed settlement).

I have had many discussions with Susan over the past two months and can attest to the fact that she is a genuine timeshare owner motivated by the same concerns shared by many of us who are RCI Weeks members. She became involved in this case for the right reasons. She didn't even know there was such a thing as being an attorney for the Objectors. Read her various posts earlier in this thread (Susan2). She believes the plaintiffs (who are supposed to be representing us) have not done an adequate enough job re: obtaining a better settlement. Her appearance and statements at the "Fairness Hearing" in June prevented the settlement from becoming a "done deal."

I'd rather not comment about the second attorney who is asking to be appointed as attorney for the Objectors.

 

[Carolinian]

Get articles in your HOA newsletters

How many members have resort newsletters that will come out between now and when all of this is done? We need to write newsletter articles and try to get them in our resort newsletters. If you have a homeowner-controlled HOA, that should be easier than with developer control. My only remaining US resort will have a newsletter out, and I will see that it has an article. My European resorts do not have newsletters, and I will have to check on the timing on the SA newsletter.

Maybe Jenny or Suan could write a generic one that could be paraphrased or with their permission submitted intact under another byline?

 

[Simoncc]

With Points, you still own the "underlying" week and have the right to reserve the use of it each year (within certain timeframes) instead of accepting the Points. You also have the "home resort preference." If you have reserved the use of your own week and/or unit, or another week at your home resort, and you later find something in the RCI Points inventory that you would like to have instead, you can cancel your home resort reservation (usually without any cost or loss of points if it is more than 120 days before the check-in date) and confirm the other week.

I certainly wasn't aware of this feature - I'll have to check that it applies to the European Points based programme.

I raised the question as I have recently been looking for availability at one of my home resorts and coming up with nothing. Last year at the same time I was seeing several options and wondered if RCI were dipping their fingers into the Points deposits as well.

 

[Jennie]

Sorry, I didn't notice that you are from the UK. The rules may be different. Here in the U.S. generally only owners can reserve weeks at their home resort within 10-13 months before the check-in date, using RCI Points. Thereafter any Points owner can reserve the weeks. Have you been looking after your home resort reservation preference period expired? Take time to study the rules of your membership so that you can get the best value from it.

Why don't you check the Points Systems Forum/bulletin board here at TUG. I think there are some UK members who can help you more.

By the way, I admire your country for passing tough new laws to protect consumers from victimization by unscrupulous timeshare schemes. Maybe they will investigate RCI Europe in the future.

 

[Jennie]

How many members have resort newsletters that will come out between now and when all of this is done? We need to write newsletter articles and try to get them in our resort newsletters. If you have a homeowner-controlled HOA, that should be easier than with developer control.
Maybe Jenny or Suan could write a generic one that could be paraphrased or with their permission submitted intact under another byline?

We are working out a gameplan to do as much as possible to get the word out about the issues involved in this lawsuit, and what action owners can take, if they wish.

Publication in resort newsletters is an excellent idea!

I will be attending the annual meeting at one of the homeowner controlled resorts where we own three weeks. It is always held on the first Sunday in October. The drive to and from provides a great opportunity to enjoy the Fall foliage. Usually a couple of hundred loyal long-term owners show up each year. Many are seniors who are not on the Internet.

We intend to speak at the meeting about the RCI class action lawsuit, as well as distribute hand-outs, and forms they can fill out and mail if they wish to opt out or apply for one of the "trinket benefits", plus self-addressed envelopes to use if they want any "objections" made known to the judge.

If any Weeks owner is interested in trying to distribute something like this at an owner's meeting, let us know and we will supply it.

We are also planning to send an information packet with these forms to the Managers of the smaller resorts and ask if they would be willing to place copies at the Front Desk and/or other areas frequented by guests (e.g. health club, locker rooms, near a coffee machine, etc... ).

If you think one of your resorts might be receptive to this idea, please let us know the name and address. We will not mention your name, unless you are willing for us to do it.

For a reason I cannot disclose at this time, we will probably not have this material available to go out until around the middle of September. Something important might happen before then that could change the contents of the materials we are preparimng.

Thanks for all your support!

 

[ecwinch]

I'd rather not comment about the second attorney who is asking to be appointed as attorney for the Objectors.

Based on the objection letter that Mr. Willett filed with the court, it would appear that his intentions justify some of the OP concerns. He indicates that he would prefer that the case be filed in California, where he practices law. I also did not find his objection letter to be particularly well-written.

Combined with those factors, and the fact that he is not a timeshare owner, I think Susan is the best person to represent the objectors in this situation. I think the other posts regarding her qualifications and purpose are spot on. Hopefully, the Judge will see it the same way.

 

[Jim Bryan]

Thank you Jennie!

Just noticed this.